New business license tax could cost Mt. Pleasant property owners $8.5 million, mayor says

VIDEO: New business license tax could cost Mt. Pleasant property owners $8.5 million, mayor says

MOUNT PLEASANT, S.C. (WCSC) - Mount Pleasant Town Council is expected to approve a petition on Tuesday against a bill making its way through the statehouse.

Mount Pleasant Mayor Will Haynie and town council members are asking the Governor to refuse to support, approve or sign the proposed South Carolina Business License Tax Reform Act.

Essentially this bill aims to amend the law when it comes to getting a business license and changes to business taxes and how they're computed. Officials in Mount Pleasant say this new law looks to control the taxation of businesses in our community.

Haynie says, in the petition, that administration and collection of business license taxes are most effectively and efficiently handled by the Town of Mount Pleasant without being dictated by the state. According to Haynie, the financial impact of the proposal would shift the tax burden to Mount Pleasant property owners.

The petition states the portions of the proposal, which are quantifiable, would be a minimum of $4 million or 30% of the town's business license revenue. Portions of the proposal, which are not easily quantifiable, but estimated, will be significant with the change in the calculation from "gross income" to "business taxable income." Haynie claims estimations run as high as an 88% loss in revenue or an additional loss of $8.5 million.

“South Carolina communities have diverse economic needs that are best met at the local level by the decision makers closest to the citizens, ensuring revenues are generated in a diverse way to not overburden one segment of our community,” Haynie says.

The petition goes on to say the standardized tax due date, which is May 1st, would impede the town's cash flow and may negatively impact its ability to provide Town services.

The South Carolina Business License Tax Reform Act is in a House committee right now. If you’d like to read more about the bill, you can go here. In the search bar type, “4431.”

Council is expected to vote on approving the petition during the town’s council meeting Tuesday at

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